Zennor Petroleum acquires Britannia field interest

SURREY -- Zennor Petroleum Limited has announced that its wholly owned subsidiary, Zennor North Sea Limited, has entered into a Sale and Purchase Agreement with Mitsui E&P UK Limited (MEPUK) in respect of its interests in United Kingdom Continental Shelf Licenses P.213, Block 16/26a, Area B and P.345 Block 16/27b Area B, which represent an 8.97% working interest in Britannia field. Completion of the transaction is subject to customary regulatory and partner consents

The acquisition of Britannia field interest is strategic for Zennor given its 100% operated working interest in the nearby Finlaggan field. Finlaggan is scheduled to be developed as a subsea tie-back to the Britannia platform. As notified in the Operations Update dated July 10, 2018, Zennor is currently drilling two wells as part of the Finlaggan field development. Further updates on Finlaggan are anticipated to be announced in the coming weeks.

The acquisition also fits with the recently announced 30th Offshore Licencing Round awards where Zennor was successful with several 100% operated awards in and around Finlaggan and Britannia fields. These awards include the Leverett Discovery in Block 21/03d, which may form a future potential tie-back to the Finlaggan subsea infrastructure.

The effective date for the transaction, which doubles Zennor’s net production to circa 5,000 boed is Jan. 1, 2018. As part of the transaction agreement, MEPUK will retain the majority of the decommissioning liability up to an agreed cap with Zennor being responsible for the balance.